SA form p60 and pension contributions

bootman

Hi a quick query please.

My husband has always paid contributions directly from his pay to the plan so the figure on the p60 for taxable income has always reflected this.

He has moved employer but has contiuned to pay into the same pension plan directly from his bank account instead as it was one of those pensions you could take with you if you changed job.

So the p60 is not going to have deducted the payemnts made to the pension.

Does he lose out now because the whole of his pay is now on the p60 and does not take into account the pension payments.

He is a 40% tax payer so he claimes the additional relief via SA.



Thanks.

Savvy_Sue

According to the payroll people we use, our pension contributions aren't shown on our P60s anyway, so we have to take them off manually when we're filling in tax credit forms and things like that.

Isn't there a space on the SA form to put your pension payments?

ffacoffipawb

Savvy_Sue wrote:

According to the payroll people we use, our pension contributions aren't shown on our P60s anyway, so we have to take them off manually when we're filling in tax credit forms and things like that.

Isn't there a space on the SA form to put your pension payments?

I'm pretty sure that the gross salary on a P60 is after deducting employee contributions that were deducted by the employer from pay (i.e. not free standing AVCs or personal pensions).

Debt_Free_Chick

bootman wrote:

Hi a quick query please.

My husband has always paid contributions directly from his pay to the plan so the figure on the p60 for taxable income has always reflected this.

He has moved employer but has contiuned to pay into the same pension plan directly from his bank account instead as it was one of those pensions you could take with you if you changed job.

So the p60 is not going to have deducted the payemnts made to the pension.

Does he lose out now because the whole of his pay is now on the p60 and does not take into account the pension payments.

He is a 40% tax payer so he claimes the additional relief via SA.



Thanks.

The answer to all this depends on exactly what type of pension he has - can you confirm please?

bootman

It was a group personal pension that he had through his work with standard life. He left that employer and because of the type of pension, he was able to continue to run it now he no longer works for them.

So we now pay directly into it by D/D instead of it being taken from his pay.

His new employer also pays directly into it as well.

Many thanks.

isasmurf

Contributions to Group Personal Pensions are deducted from salary AFTER tax, so there should be no difference between your old and new employers. The pension contributions will not be deducted from taxable pay on the P60.

Standard Life will reclaim basic rate relief (22%) on the pension contributions and add it to your fund. You must reclaim the remaining by entering TOTAL pension contributions for the year on your SA return (in section 14 IIRC).

bootman

Thank you isasmurf for clarifying this for me.